The Saint Lucian economy grew by 4.7% last year and is projected to grow by 4% next year, after adjustments for inflation, according to Prime Minister Philip J Pierre.
The prime minister, who delivered this year’s budget address in parliament earlier this week, stated that it was the fourth year of sustained economic growth that Saint Lucia has experi-enced.
“Unemployment dropped to 10.6% in 2024 and reached single digits in the first quarter of this year, the lowest level on record. The debt-to-GDP ratio for 2024 was 73.5%, in the absence of rebasing. Our fiscal position remains strong, with our country recording its third consecutive year of a primary surplus, a further measure of the robust nature of our economy,” Pierre said.
He claimed that the Saint Lucian economy has done exceptionally well and is heading in a very different direction than when we assumed office in 2021. Said Pierre, “The fiscal position of the government improved in 2024. The overall deficit was 1.8% of GDP, decreasing from 3.2% in the previous year. The primary surplus was 1.4% of GDP compared to 0.2% in the previous year. The current balance moved from a deficit of XCD3.5 million in 2023 to a surplus of XCD 27.5 million in 2024.
The Banking sector remains robust and very liquid during 2024. Our local bank, Bank of Saint Lucia, is now the largest in the Eastern Caribbean Currency Union, with an asset base of over XCD 3 billion. For the year 2024, the bank is expected to record a profit of over $100 million.”
According to the prime minister, the economic growth that he spoke of in the last year was con-sistent with electricity consumption for that period. Last year, the level of electricity consump-tion increased by 6% over the previous year. There was an increase in electricity consumption in every category: commercial, domestic, hotel, and industrial. The only category in which there was a decline, according to LUCELEC data, was street lighting; an intended outcome, fol-lowing the government’s project to replace high-pressure sodium bulbs with the more efficient solar LED bulbs. In this case, electricity consumption dropped by more than 47%.
“There were other indicators supporting the economic growth of the country. Total deposits in-creased by 15%. The money supply increased by 8.4% and 10.8%, respectively, and credit in the private sector went up by 5.1%. Where we are today is no accident and is the result of prudent and strategic management of the Saint Lucian economy. In the face of an optimistic outlook of better days ahead, there are some downside risks that must be acknowledged,” PM Pierre said.
He said that the current imposition of tariffs by the US on goods from its traditional trading partners and their retaliatory response will reduce global economic growth, which may have adverse consequences for the local tourism industry.
In addition, any intensification of the conflict between Russia and Ukraine may also further negatively impact supply-chain issues and food prices.
Regarding the public debt, the prime minister said it has been the government’s policy to ensure that information regarding that debt is available for scrutiny and public comment. “In this re-gard, we have the following documents ready for public dissemination: the Debt Bulletin, com-prising debt portfolio review and the Medium-term Debt Strategy. The debt-to-GDP ratio as of 2024 was 73.5%, totalling XCD 5.1 billion. External debt accounted for 61.5% while the bal-ance, domestic debt, accounted for 38.5%.”